According to this theory, if people believe they are not being treated fairly, especially in relation to relevant others, they will be dissatisfied, and this belief will have a negative effect on their job performance.

Question

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Equity theory focuses on how motivation is affected by people's perception of how fairly they are being treated. The theory holds that if people perceive that they are being treated equitably, this perception will have a positive effect on their job performance and satisfaction, and there is no need to strive for equity. Conversely, if they believe they are not being treated fairly, especially in relation to relevant others, they will be dissatisfied, and this belief will have a negative effect on their job performance and they will strive to restore equity.

According to This Theory, If People Believe They Are Not